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2023 (6) TMI 761 - AT - Income TaxAddition of Transfer Pricing Issue - selection of MAM - CUP v/s RPM - CIT(A) adopting the CUP method for benchmarking the purchase of 8K SIM cards by the assessee from its AEs and rejecting the RPM method adopted by the TPO - HELD THAT:- As for the purpose of benchmarking international transactions pertaining to imports- the purchases of E- Cards, Pay Phone Cards and POS Component cannot be aggregated together as they are not inextricably linked, and they are required to benchmarked separately. Apart from adopted CUP based on incomplete data and ignoring geographical differences, further also committed an error by giving benefit of “+5% on the average rate to USD 1.90 per card and calculated the rate per card to USD 1.99” and held that the transaction could be at Arm’s Length. The said approach of the CIT(A) is found to be erroneous. CIT(A) has incorrectly applied the CUP method based on incomplete data, ignoring geographical differences and contrary to the Assessee’s own TP Analysis and contrary to TP Auditor’s Report. CIT(A) has also erroneously aggregated the transactions despite judicial pronouncements on the issue. The order of CIT (A) deserves to be set aside and the order of the TPO/A.O. shall be upheld by allowing the Ground No. 1 of the Revenue. Violation of Rule 46A - Revenue is aggrieved by the acceptance of additional evidence by CIT-A - HELD THAT:- Considering additional evidence admitted by the CIT(A) has not been helped the assessee in making the decision by the CIT(A), the Ground No. 2 urged by the Revenue has become only academic. Further, considering the fact that the ld. CIT(A) has recorded its reasons while admitting the additional evidence submitted by the Assessee and also considering the fact that the Ld. CIT(A) has provided opportunity to the TPO to examine the evidence submitted by the assessee, we find no violation of Rule 46A of the Income Tax Rules.
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